The Advanced Propulsion Centre UK (APC) has announced the latest government-backed projects under the DRIVE35 programme. It is a package of over £470m in grants to support the UK automotive industry.
Including substantial UK government support of around £380m for Agratas, part of the Tata Group and parent company of JLR. Agratas combines pioneering research, world-class engineering, and sustainable design to deliver high-performance battery solutions.
This investment is provided through the Department for Business and Trade’s DRIVE35 Automotive Transformation Fund (ATF), facilitated by the APC. It represents another vital milestone in the UK’s transition to zero-emission vehicles.
Julian Hetherington, Automotive Transformation Director at the APC, said: “This globally significant investment by Agratas reinforces the UK’s accelerating position in pursuit of road transport decarbonisation through the production of vital high-performance batteries for electrified vehicles.”
“I’m delighted that the ATF has been able to support Agratas in their investment in new facilities, creating secure and highly skilled jobs in this area and across the supply chain.”
Delivered by the Department for Business and Trade in partnership with the APC and Innovate UK, the DRIVE35 programme supports innovation, scale-up, and industrial transformation within the automotive sector. Grant awards are paired with private industry investment and will accelerate the development of next-generation zero-emission vehicle technologies and supply chains across the UK.
“Our Modern Industrial Strategy is central to this government’s growth mission, and by funding our automotive sector, we are creating the right conditions for increased investment, economic growth, and jobs across the country. I want to congratulate all the winners on their success as we continue to support key projects that bring the latest R&D for cutting-edge technologies, accelerate commercial scale-up, and attract investment in zero-emission vehicles, batteries, and their supply chains.”
Minister for Industry Chris McDonald
Other government grant awards unveiled today span four DRIVE35 competition streams and together represent £90.5 million in government funding. They are Collaborate, Demonstrate, Scale-up Fund, and Scale-up Feasibility Studies. They aim to boost domestic manufacturing, grow industrial capability, and strengthen sovereign supply chains across the country.
Ian Constance, CEO, APC, said: “The projects announced today demonstrate the UK’s determination to lead the shift to zero-emission mobility. By facilitating the UK Government’s DRIVE35 grants, we are turning world-class innovation into industrial capability. With our partners in DBT and Innovate UK, we are backing manufacturers, empowering SMEs, and strengthening the UK’s sovereign supply chain.
This multi-million-pound support package is more than an investment in technology; it is an investment in the people, skills, and companies that will define the future of clean transport. Together, we are building the foundations of a competitive, resilient, and sustainable automotive industry.”
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